, hedge funds, money managers, treasuries, and corporations - don't trade the foreign exchange market via the dealer's resident platform? Imagine for a moment that you are the coach of a football team and that the rules require you to signal the opposing coach every time your team is going to throw a forward pass. Is that a rule you could live with?
Would it surprise you to discover that a similar rule applies when you trade the forex using a dealer's resident platform? Well, it does. Institutional Fx Trading Platforms As it stands today, when you trade with forex dealers via their resident trading platforms, you have no choice but to provide advanced notice of your intentions and this occurs every time a limit order is created or a submitted market order is accompanied by a standing stop loss or take profit order. The mere presence of these visible follow on orders on your dealer's server makes it easier for the dealer to trade against your position and/or collective/cumulative orders of others. An API (Application Programming Interface) driven trading platform denies the dealer the advantage of having access to your exist strategy. Orders executed do not reside on the dealer's platform. They remain on your computer until the specified market price has been reached at which time they are forwarded to the dealer for execution. In the final analysis, the advantage is obvious. API trading levels the playing field. Institutional traders trade against the dealer's API using internally developed and costly proprietary platforms. Retail traders are well advised to either develop their own application to trade directly with their dealer or find a forex API trading platform they can use without incurring the extraordinary time and expense. Institutional Fx Trading Platforms
Institutional Fx Trading Platforms - The Forex API Trading Advantage